Friday, September 17, 2010

Citigroup (NYSE:C) Increases Calpine (NYSE:CPN) Price Target

Citigroup Inc. (NYSE:C) said they increased their price target on Calpine Corp. (NYSE:CPN), based on "higher EBITDA estimates."

In a research note, analyst Brian Chin said, "We are updating our adjusted EBITDA estimate for 10 and 11 to $1,787 and $1,811 million, from $1,462 and $1,694 million, respectively and introducing our $1,847 million 12 [adjusted] EBITDA estimate. The majority of our estimate increase is due to higher utilization assumptions, Connectiv and improved O&M assumptions. We marked our model to market as of 9/8/10."

The price target for the company, which owns and operate power generation plants, was raised from $16.50 to $18.00.

Citigroup added they're maintaining a "Buy" rating on the company.

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